Strong demand in North America helped Nike post second-quarter net income that beat expectations, despite weaker sales in China and costs related to the sale of two brands.
The world's largest athletic gear maker yesterday reported its net income fell 18 per cent during the three months ended November 30, but revenue rose 7 per cent, fuelled by the popularity of its Nike brand.
Results reassured investors about the company's strength and shares rose 5 per cent in after-market trading.
Like most global companies Nike has been dealing with Europe's weak economy and a slowdown in growth in China. Nike said it is working to reduce its inventory in China and reworking its offerings there to adapt to the changing tastes of Chinese consumers.
"We know what needs to be done in China and we know we can do it because we've done it before," said chief executive Mark Parker.